NT Darwin 2023

Hi all,
Though I'd post some updated Intel from on the ground here in Darwin.

From what I'm seeing, the interest rate hikes are really hitting home now, slowing the market dramatically. The exception, as always, seems to be quality, elevated family homes which are still selling reasonably quickly for good money.

Everything else seems to have come to a grinding halt. Agents are getting 0-1 group through per inspection and the time to sell is blowing out.

Prices are too high and sellers are starting to realise this. The decline that the east coast has faced is finally reaching Darwin.

On the flip side, rents are still rising and yields now range from "very good" to "unbelievable".

Also worth mentioning that despite all this, prices for property are still very fair. 500k will get you a nice 3 X 1 in the northern suburbs on 800m2 and 2 br units are around 350k.

As someone who watches the market, par for me is currently a 3 X 1 for around 470 and a decent 2 br unit for around 300k.

Anyway, that's just my thoughts. Any other locals feel free to chime in! @Purple Patch @Darwin55 @foxtrotunicorn @Ajax @Longrass

 

Yep, I agree with what you’re saying.

I’ve a mate trying to sell a place at the minute and only getting one or two groups through each opening.

Crime is becoming a major issue now with people moving here for the grog.

Something major needs to happen soon or it will be like Alice Springs.

 

Alice has found it really difficult to remedy over the years. Not sure what the answer is.

 

Yes, I'm selling a 2 bedder in Parap and it is slow. Did receive offers though, just not great ones.

My very wild guess is we are at the bottom and it will get better. The dry always lifts spirits too.

We miss Darwin lots, especially friends we have made. But after a glass or 2 everyone seems to be planning to head south within 5-10 years. So not sure whether it would be worth staying for the friendships.

It is a real shame.

 

Yep, It sure is a transient place. Friends come and go

 

I’m selling a 3 bedroom 1 bathroom cottage in Gunn at the moment with a price guide of 389k Had been let for last 12 months at $500/week and could probably achieve $525/week now Had 5 groups through last Saturday one day after being listed Am told by neighbours it is a very keen price

 

389k for a rent of 525 per week?!. It'll move for sure.

I'm going against the grain and am thinking of buying now. Really good deals are starting to show up and you can now lowball vendors - securing a very high yielding place in a capital city for a relatively low outlay.

That and the fact that rents keep rising here, the rental restrictions that are being legislated in other states aren't being put in place in the NT, immigration is at 400k pax per annum and paused rate rises all bode well.

I think.

I've got predicting the unpredictable wrong in the past ..

 

Yeh, rents are still strong and rising

 

I'm with you and would if I could. My Parap place would yield 10% (gross) as a rental and sky is the limit as an AirBnB.

 

Here's a link to the house I'm selling.

https://www.realestate.com.au/property-house-nt-gunn-141846976

I'm not sure which way the market is going in Darwin. If interest rates start to fall a little (3% rba rated suggested by September 2024 by the 30 Day Interbank Cash Rate Futures Implied Yield Curve) it might be a good time to buy here. Am selling because am living overseas without work rights and am trying to simplify my financial position. Pity because the rental return is starting to look good.

https://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf

 

This defence review bodes very well for Darwin...

Australia's military has begun one of its greatest shifts since WWII. Here's how it will change

 

What sort of areas would you recommend in Darwin. Have driven around alot, yet to bite the bullet. Just looking for a good 3br for rental and growth

 

Is it just me or is this tourist season coming on quite slow? I had a look on airbnb and rents are decent but a fair bit of vacancies still...

it might free up some rental stock if people decide to delist off airbnb

 

I agree. I reckon lots of people saw how Airbnb made squillions last season and are looking to replicate.

Now there are too many Airbnbs.

The rates and inflation are hitting tourists. They're not coming.

 

How long have you been up here?

I did an extensive write-up on Darwin and surrounds in 2017. The economic situation has changed a lot since then (it was completely dead in 2017 - much better now). But it still should help?

 

Mum doing AirBnb at Stuart Park, 5 mins from city.
Making bank... 5 nights going for 1.6k.

 

Totally agree. I'm on Groote eylandt. And your spot on!!!

 

I noticed some apartments are quite large and cheap up there. Eg $600K &. 200 msq. I imagine strata would be expensive there?

 

Yes. There is a lot of supply and strata is quite dear.

However, many builds are large, breezy and lofty and sell well below replacement. Admittedly, if they are 20+ years old, many are showing it (humidity does woeful things) and you feel the sqm when reno'ing.

I would not consider any of them as IP, personally.

Free standing houses above the Berrimah line only IMHO

 

Mould is a killer for sure!!! Fans and AC are on literally 70% of the time! In the dry fine to turn off etc but other than that on all the time!!!!